How Long Can You Be Overdue Before Foreclosure Happens?

The assessment that follows your first missed payment can help you avoid foreclosure.

Nonjudicial foreclosure, which happens without court involvement, is the most common type in California. The deed of trust that secures your loan has a power-of-sale clause that allows a trustee to sell your home to recoup the lender’s loss if you default on the loan. Unless you act to stop it, you could lose your home within six months of missing your first payment.

Foreclosure Avoidance Assessment

You have missed a mortgage payment once it is 30 days past due. This is when the foreclosure process often begins. As a first step, your lender must contact you to assess your situation and determine whether it’s possible to get your payments back on track. You can request a second assessment meeting to take place within 14 days.

Notices of Default and Sale

The lender may record a notice of default 30 days after your assessment. Recording makes the notice part of the public record. If you’re unable to work out an arrangement within 90 days of the recording date, the lender records a notice of sale warning of the impending sale of your home at auction. The auction can happen as soon as 21 days after the notice is recorded. You can reinstate your mortgage as late as five days before the trustee auctions your home.

Vacating the Home

The new owner of the home must give you three days to “quit,” or vacate. If you don’t leave, the owner must begin eviction proceedings through a court. Evictions typically take a several weeks to resolve.

About the Author

Daria Kelly Uhlig began writing professionally for websites in 2008. She is a licensed real-estate agent who specializes in resort real estate rentals in Ocean City, Md. Her real estate, business and finance articles have appeared on a number of sites, including Motley Fool, The Nest and more. Uhlig holds an associate degree in communications from Centenary College.